RBS to Sell Some India Assets to Local Bank

Royal Bank of Scotland Group PLC Friday said it would sell some of its assets in India to a local bank, as part of its strategy of shedding non-core assets globally.

RBS will sell its business banking, credit cards business and loan portfolio to India’s Ratnakar Bank Ltd. for an undisclosed amount, according to a press release issued jointly by the two banks.

RBS has been trying to sell these assets for more than two years, as it has been under pressure to shrink its global balance sheet. The bank is now 81% owned by the U.K. government, following a bailout in the 2008 financial crisis.

RBS has been cutting back on its Indian operations over the last few years, while actively scouting for a buyer for some of the assets. In July 2010, it entered into an agreement with Hong Kong & Shanghai Banking Corp to sell its India retail assets, but the deal was officially called off in November.

The deal with Ratnakar Bank will include the transfer of RBS’ staff as well as over 120,000 customers to Ratnakar Bank, according to the press release. Completion of the deal is subject to approval from India’s competition regulator, the statement added.

RBS will continue to offer financing, risk management, wholesale and investment banking, and wealth management advice to its clients, it said. It will have a retail presence in 10 locations across India, the press release added.
PricewaterhousCoopers was the advisor to Ratnakar Bank while Morgan Stanley and RBS M&IB Asia Pacific advised RBS.